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| UK govt budget extends furlough scheme, unveils corporation tax hike to plug economic black hole of wage-paying jobs lost to Covid | UK govt budget extends furlough scheme, unveils corporation tax hike to plug economic black hole of wage-paying jobs lost to Covid |
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| The UK government will continue to pay the wages of people who have lost work due to Covid-19 until September, Chancellor Rishi Sunak told MPs in the House of Commons on Wednesday as the country's 2021 budget was unveiled. | The UK government will continue to pay the wages of people who have lost work due to Covid-19 until September, Chancellor Rishi Sunak told MPs in the House of Commons on Wednesday as the country's 2021 budget was unveiled. |
| The extension of the UK's so-called "furlough scheme" means that the government will cover up to 80 percent of the wages of employees that businesses cannot afford to pay. | The extension of the UK's so-called "furlough scheme" means that the government will cover up to 80 percent of the wages of employees that businesses cannot afford to pay. |
| The UK economy suffered a record GDP slump of 9.9 percent in 2020 – the biggest such decrease since records began in the 1940s. | The UK economy suffered a record GDP slump of 9.9 percent in 2020 – the biggest such decrease since records began in the 1940s. |
| Despite the historic shrinkage, Sunak said the UK economy could return to its pre-pandemic level by the middle of 2022, according to a forecast by the Office for Budget Responsibility. | Despite the historic shrinkage, Sunak said the UK economy could return to its pre-pandemic level by the middle of 2022, according to a forecast by the Office for Budget Responsibility. |
| Sunak outlined multiple actions under what he said was a three-part plan in his budget focused on jobs and livelihoods, the public finances and the UK's future economy. | Sunak outlined multiple actions under what he said was a three-part plan in his budget focused on jobs and livelihoods, the public finances and the UK's future economy. |
| One of the most significant measures announced was an increase in the corporation tax from 19 percent to 23 percent, a move Sunak had been widely expected to pursue in order to start paying back government debt. | One of the most significant measures announced was an increase in the corporation tax from 19 percent to 23 percent, a move Sunak had been widely expected to pursue in order to start paying back government debt. |
| "These are significant decisions to have taken. Decisions no chancellor wants to make. I recognise they might not be popular, but they are honest," Sunak said. | "These are significant decisions to have taken. Decisions no chancellor wants to make. I recognise they might not be popular, but they are honest," Sunak said. |
| Businesses in Britain's hospitality and tourism industries, which have been devastated by the pandemic, will also be given a six-month extension to the 5 percent reduced rate of VAT, Sunak said. | Businesses in Britain's hospitality and tourism industries, which have been devastated by the pandemic, will also be given a six-month extension to the 5 percent reduced rate of VAT, Sunak said. |
| Among the main measures affecting people's everyday lives include that 600,000 more self-employed people will now be able to claim government grants. | Among the main measures affecting people's everyday lives include that 600,000 more self-employed people will now be able to claim government grants. |
| The Chancellor also announced some £19 million for domestic violence programmes to address what he called "one of the hidden tragedies of lockdown." | The Chancellor also announced some £19 million for domestic violence programmes to address what he called "one of the hidden tragedies of lockdown." |
| Sunak revealed that the government has borrowed a record £355 billion this year, its highest level since World War II. | Sunak revealed that the government has borrowed a record £355 billion this year, its highest level since World War II. |
| He also said the government would cancel all duties on alcohol and fuel, pledged to invest more in green energy, unveiled funding for the arts, and announced a task force of 1,000 HMRC investigators to clamp down on fraud related to tax avoidance and evasion. | He also said the government would cancel all duties on alcohol and fuel, pledged to invest more in green energy, unveiled funding for the arts, and announced a task force of 1,000 HMRC investigators to clamp down on fraud related to tax avoidance and evasion. |
| The opposition Labour leader Keir Starmer accused Sunak of "papering over the cracks instead of rebuilding the foundations" with his budget. | The opposition Labour leader Keir Starmer accused Sunak of "papering over the cracks instead of rebuilding the foundations" with his budget. |
| Starmer said the budget failed to properly address Britain's health service, unemployment, the climate emergency and inequality. | Starmer said the budget failed to properly address Britain's health service, unemployment, the climate emergency and inequality. |
| Think your friends would be interested? Share this story! | Think your friends would be interested? Share this story! |